Core Marketing Concepts
To understand the marketing function, we need to understand the following core set of concepts.
Needs, Wants, and Demands
Needs are the basic human requirements such as for air, food, water, clothing, and shelter. Humans
also have strong needs for recreation, education, and entertainment. These needs become wantswhen they are directed to specific objects that might satisfy the need. A U.S. consumer needs food
but may want a Philly cheesesteak and an iced tea. A person in Afghanistan needs food but may
want rice, lamb, and carrots. Wants are shaped by our society.
Demands are wants for specific products backed by an ability to pay. Many people want a
Mercedes; only a few are able to buy one. Companies must measure not only how many people
want their product, but also how many are willing and able to buy it.
These distinctions shed light on the frequent criticism that “marketers create needs” or “marketers
get people to buy things they don’t want.” Marketers do not create needs: Needs preexist
marketers. Marketers, along with other societal factors, influence wants. They might promote the
idea that a Mercedes would satisfy a person’s need for social status. They do not, however, create the
need for social status.
Some customers have needs of which they are not fully conscious or that they cannot articulate.
What does it mean when the customer asks for a “powerful” lawn mower or a “peaceful” hotel? The
marketer must probe further. We can distinguish five types of needs:
1. Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants a car whose operating cost, not initial price, is low.)
3. Unstated needs (The customer expects good service from the dealer.)
4. Delight needs (The customer would like the dealer to include an onboard GPS navigation
system.)
5. Secret needs (The customer wants friends to see him or her as a savvy consumer.)
Responding only to the stated need may shortchange the customer.18 Consumers did not know
much about cellular phones when they were first introduced, and Nokia and Ericsson fought to
shape consumer perceptions of them. To gain an edge, companies must help customers learn what
they want.